Latest update February 20th, 2025 12:39 PM
Collaboration and commitment make Guyana special for investment- Exxon’s Senior VP tells Energy Conference
By Davina Bagot
Kaieteur News- Guyana is “special” to ExxonMobil, not only because of the vast resources the country boasts, but also the “human elements” that have created the right environment for investment.
Exxon’s Senior Vice President, Deep Water, Hunter Farris during his address at the Guyana Energy Conference
This is according to Exxon’s Senior Vice President, Deep Water, Hunter Farris. During a presentation at this year’s Energy Conference and Supply Chain Expo, being held at the Marriott Hotel, Georgetown, he highlighted the importance of the country’s newfound resources, not only to Guyana, but the Region as well.
He said, “Guyana’s oil discoveries have made it a global player and a geopolitical force. Its gas discoveries can make it a critical source for Regional development. The really amazing part, in 10 years, is that this represents just the beginning.”
Farris went on to tell delegates that Guyana’s success over the past decade is not just a testament of the country’s vast resources but also ExxonMobil’s technology and project performance supported by the “wisdom and foresight of Guyana’s leadership”.
“Their ability to foster working partnerships and their commitment to establishing the right environment for investment, collaboration and discovery, that’s what makes Guyana special,” Exxon’s VP told the conference.
He was keen to note that while there are numerous countries blessed with resources, they lack these conditions. To this end, he reasoned, “Yes, the resources are obviously important. I wouldn’t pretend otherwise, but in the case of this nation, it’s likely that without those elements, the human ones, the civic ones that enable partnership and progress, Guyana’s oil and gas would have remained very deep beneath the sea bed.”
ExxonMobil, the operator of the Stabroek Block, made its first oil discovery in May 2015. Since then, the company has announced a string of other successful commercial finds, with total discoveries so far reaching 46.
While the debate continues around the block’s true reserves, Exxon is continuing with its exploration and appraisal programme. Government reported last year that the Stabroek Block is estimated to hold 11.6B barrels of resources but Exxon later told the media that its estimate is lower.
In the meantime, there is a much larger row between a section of society and the government of Guyana, who previously committed to renegotiating the terms of Exxon’s oil deal, but now refuses to do so.
Stakeholders have argued that due to the drastic changes in the Stabroek Block, Guyana would be well within its right as a sovereign nation to demand greater benefits for its resources. In 2016 when the agreement with ExxonMobil and its partners were made, the country’s oil reserves stood at a just three billion barrels. Fast forward to nine years later, the Stabroek Block is now estimated to hold more than 11.6 billion barrels of oil.
This means that the reserves have almost quadrupled while the country continues to receive a thin slice of the pie, with the oil companies enjoying over 85% of the revenue generated each month. According to the 2016 PSA, Exxon can deduct up to 75% of Guyana’s oil monthly to cover its expenses. The remaining 25% is split with Guyana equally as profits, with the country earning an additional 2% from the contractor’s share as royalty.
At his end of year press conference on December 31, 2024, President Irfaan Ali made it clear that he has no interest in writing to Exxon to seek changes to the lopsided arrangement.
This position however differs from the one he held while his party was in Opposition and he was only a Presidential candidate.
During an interview while running for president back in March 2020, Ali had strongly criticised the PSA signed by the Coalition Government with ExxonMobil. He stated at the time, “We have made it very clear, and we can never agree, how could, how could, I don’t think any Guyanese agree with this, no Guyanese except the government that is defending it. We have made it very clear that we have to go towards, we’re looking at these contracts, renegotiating these contracts, looking at contract management and all of these things. Everything we have to relook at because we have to ensure that our country does not get the wrong end of the stick.”
(Collaboration and commitment make Guyana special for investment- Exxon’s Senior VP tells Energy Conference)
(Collaboration and commitment)
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